Swiggy Ltd Sees Sharp Open Interest Surge Amidst Mixed Market Signals

Open Interest and Volume Dynamics

On 10 Feb 2026, Swiggy Ltd’s open interest (OI) in futures and options contracts rose sharply to 39,700 from the previous 34,546, marking an increase of 5,154 contracts or 14.92%. This surge in OI was accompanied by a total volume of 58,580 contracts traded, indicating robust participation in the derivatives market. The futures segment alone accounted for a value of approximately ₹61,834.5 lakhs, while the options segment’s notional value stood at a staggering ₹20,700.2 crores, culminating in a combined derivatives market value of ₹67,123.1 lakhs.

The underlying stock price closed at ₹351, having touched an intraday high of ₹351.9, representing a 5.45% gain on the day. This price action outperformed the E-Retail/E-Commerce sector by 4.79% and the broader Sensex by 5.08%, underscoring Swiggy’s relative strength in the current trading session.

Market Positioning and Directional Bets

The sharp increase in open interest alongside rising volumes suggests that market participants are actively repositioning themselves, possibly anticipating further price movements. The stock has recorded gains over the last two consecutive days, delivering a cumulative return of 9.72%, which may have encouraged fresh long positions or the unwinding of shorts in the derivatives market.

However, the weighted average price indicates that a significant portion of volume was traded closer to the day’s low price, hinting at some underlying selling pressure or cautious profit-taking despite the overall price rise. This divergence between price highs and volume-weighted average price could reflect a battle between bulls and bears, with neither side fully dominating.

Further, Swiggy’s moving averages reveal a mixed technical picture. The stock is trading above its 5-day and 20-day moving averages, signalling short-term bullish momentum, but remains below its 50-day, 100-day, and 200-day averages, which suggests that medium to long-term trends are still under pressure. This technical setup may be encouraging speculative trading in the derivatives market, with traders betting on short-term rallies while remaining wary of broader downtrends.

Investor Participation and Liquidity Considerations

Despite the price gains and increased derivatives activity, investor participation on the delivery front has declined. Delivery volume on 9 Feb fell by 30.92% compared to the 5-day average, with only 46.96 lakh shares changing hands in delivery. This drop in delivery volume indicates that while traders are active in the derivatives segment, long-term investors may be adopting a wait-and-watch stance or reducing exposure.

Liquidity remains adequate for sizeable trades, with the stock’s liquidity supporting trade sizes up to ₹7.82 crores based on 2% of the 5-day average traded value. This level of liquidity ensures that institutional investors can execute large orders without significant market impact, which is crucial given the stock’s mid-cap status and market cap of ₹94,665 crores.

Mojo Score and Analyst Ratings

Swiggy Ltd’s current Mojo Score stands at 29.0, reflecting a Strong Sell rating, which is a downgrade from its previous Sell grade as of 4 Dec 2025. This downgrade signals a deterioration in the company’s fundamental and technical outlook as assessed by MarketsMOJO’s proprietary scoring system. The Market Cap Grade is rated 2, indicating mid-cap status but with limited strength in market capitalisation metrics.

The downgrade to Strong Sell suggests that despite recent price rallies and increased derivatives activity, underlying concerns remain. These may include valuation pressures, competitive challenges in the e-commerce sector, or broader macroeconomic headwinds impacting consumer discretionary spending.

Sector and Benchmark Comparisons

When compared to the E-Retail/E-Commerce sector’s 1-day return of 0.52% and the Sensex’s modest 0.16% gain, Swiggy’s 5.24% single-day return is a clear outlier. This outperformance may be driven by short-term speculative interest or company-specific news, but it also raises questions about sustainability given the mixed technical signals and falling delivery volumes.

Investors should weigh these factors carefully, considering that the stock’s price remains below key longer-term moving averages, which often act as resistance levels. The derivatives market’s increased open interest could be a double-edged sword, reflecting both bullish bets and potential hedging activity by institutional players.

Outlook and Strategic Considerations

Given the current market positioning, investors and traders should approach Swiggy Ltd with caution. The surge in open interest and volume points to heightened volatility and active repositioning, but the overall negative mojo grade and technical indicators suggest that risks remain elevated.

Short-term traders might capitalise on momentum and intraday price swings, while longer-term investors may prefer to monitor developments closely before committing fresh capital. The decline in delivery volumes is a notable warning sign that genuine investor conviction may be lacking despite the recent price strength.

In summary, Swiggy Ltd’s derivatives market activity reveals a complex interplay of bullish enthusiasm and underlying caution. The stock’s outperformance relative to sector and benchmark indices is encouraging but tempered by technical resistance and a deteriorated fundamental outlook.

Final Thoughts

Swiggy Ltd’s recent derivatives market activity highlights the importance of monitoring open interest and volume patterns as indicators of market sentiment and positioning. While the stock’s short-term price gains and increased OI suggest bullish interest, the broader technical and fundamental context advises prudence.

Investors should consider the company’s downgraded mojo grade, falling delivery volumes, and mixed moving average signals before making directional bets. The derivatives market’s surge in activity may offer trading opportunities but also signals potential volatility ahead.

As always, a balanced approach combining technical analysis, fundamental assessment, and risk management remains essential when navigating Swiggy Ltd’s evolving market landscape.

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